Deutz AG Slashes Revenue Forecast, Unveils 50M Euro Savings Plan Amid Market Downturn
Deutz AG, a key player in the construction and agricultural machinery industry, is grappling with a significant downturn. The company is implementing urgent measures to stabilise its financial situation, with initial savings of 20 million euros already underway in the current quarter.
The Cologne-based engine manufacturer is battling a severe drop in demand, leading to a revision of its revenue targets. Originally aiming for 1.9 to 2.1 billion euros in 2024, Deutz AG has now lowered its forecast to around 1.8 billion euros. This update comes after the appointment of Oliver Neu as the new chief financial officer on October 1st.
To navigate these turbulent times, Deutz AG has unveiled a comprehensive savings program worth 50 million euros. This includes reducing production, streamlining administration, cutting jobs, and strategically reducing budgets for 'New Technology'. The company aims to reduce annual costs by 50 million euros by the end of 2026. The quarterly figures due on November 7th will provide the first indication of whether these measures are having an impact on the stock market.
Despite these efforts, the ambitious goal of achieving 4 billion euros in revenue by 2030 with an EBIT margin of 10 percent seems increasingly challenging given the current market conditions.
Deutz AG is in the midst of a transformation under new financial leadership, with initial savings already underway. The company is pulling out all stops to reduce costs and stabilise its financial situation, but the road to recovery remains uncertain. The upcoming quarterly figures will provide crucial insights into the effectiveness of these measures on yahoo finance.
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